These were my calculations,after removing anything from the post that could possibly be construed to be off topic.
The poster I was replying to was using a figure of 1 billion shares after buyback of 60% float and similar structured RETIREMENT of % of BOD shares. This would speed movement to major index where revenue producing companies are more fairly valued-w higher PE ratio.
Obviously at 2B shares and only half the share price would not be sufficient for major exchange,so everybody would benefit from a STRUCTURED plan -a combination of buyback of float and RETIREMENT of company(BOD)shares,as noted in the Nov 22 PR.
The PE is also higher because that's appropriate for major exchange, wheras itmd'S asumed PE ratio of 10 is appropriate for OTCBB.
I'm not contradicting itmd's calculations in any way-I am supporting his valuation contention,just using a different # shares (as explained) and different PE.
I was told last Feb OTCQX(the highest OTCBB classification-often used by foreign blue chips as well as companies such as Adidas) lowered its min price to .10/share.
That would be 100 million cap,adopting your(the post I was replying to) assumption of after buyback share count of 1 billion. Once they get to the OTCQX,which is scouted to a much greater degree by institutional investors,they can decide further on a course of action.
If they begin to be valued on a price earnings basis of 15 to one(price earnings often rose to 30 or even 40 to one before the recession)the price/share,based on yearly net income,would be 1.695,based on 50% net profit,at 112,500 tons/month ,calculated below.
113 m net income/yr times P/E of 15 equals $1,695,000,000 divided by 1 billion shares equals 1.695/share. That's how the rev producing co's are usually valued. And that's very reasonable considering most pennies are spec valued at 10 to 50 times book(with no income at all),with some at hundreds of times book.
The best mid level penny companies in up to 2 dollar price range have reduced their share count to 20 to 50 million via buyback because penny share value usually lags true worth in a revenue producing company,so by then its possible CWRN will have reduced shares via buyback much further. I then gave an example of a company.
And yes it might take a couple or even a few months to get up to this full production schedule,but based on their estimated production,this would answer your question of a share price of min of one dollar to qualify for a higher exchange.
Not immediately but after a full year of full production.(And this does not include any buyout options which could accelerate this schedule).
One reason to go to higher exchange is a valuation more closely approaching the companies worth than can be obtained on the OTCBB.
Once they get everything going,they estimated up to two 75000 ton shiploads/month. At 1 and 1/2 ships of 75k tons/month thats 112,500 tons/month or 1,350,000 tons/year. At current spot of ca $168/ton thats over 225 million revenue/year.
Itmd has estimated these things w slightly different figures-see the IBOX. Once initial bugs are worked out there should be a net of 50%-see itmd's stickies,or about 113 million net/year in this scenario.
Remember iron prices have skyrocketed from ca $37-38/ton in 2004 to spot of ca $168 now,resulting in a very high profit margin and the quantity of iron ore being demanded has also risen rapidly.
AI
